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Maxis subscribers goes further down: 12.05 million in 3Q16, no longer market leader

Maxis Berhad reported its Third Quarter 2016 (3Q16) financial results yesterday.

Maxis-Salam-Ikhlas

Maxis performance by the numbers below.

Total Mobile Subscribers

  • 12.05 million mobile subscribers, out of which 10.9 million are revenue generating subscribers (In comparison, as of 3Q16, Digi mobile subscriber base now stands at 12.25 million)
  • Maxis lost 203k mobile subscribers in the quarter including some 112k revenue generating subscribers
  • Lower Wireless Broadband subscriptions at 243k (out which 218k are revenue generating subscribers) compared to 432k subscribers it had over a year ago. It lost 29k revenue generating wireless broadband subscriptions in 3Q16.
  • Higher Home Connection (fibre) subscribers at 139k (vs 133k in 2Q16)

Prepaid Mobile Subscribers

maxis-prepaid-susbcribers-q316

  • 9.09 million prepaid users in 3Q16 compared to 9.27 million it had in 2Q16
  • Some 8.01 million are revenue generating subscribers (RGS)
  • Maxis lost a lot more prepaid subscribers in 3Q16 compared to 2Q16. It lost 188k prepaid subscribers, including 101k revenue generating subscribers (vs 55k prepaid subs it lost in 2Q16).
  • Despite the drop in prepaid subscriber numbers, Maxis said “Hotlink FAST is gaining traction and attracting high ARPU customers. More than 1 million customers are already on this data-rich plan, nearly double the number from a quarter ago.” It also claims to be the “best plan for Mobile Internet users”
  • Prepaid ARPU was at RM36

Postpaid Mobile Subscribers

maxis-postpaid-susbcribers-q316

  • 2.72 million postpaid subscribers, excluding wireless broadband subscriptions. Revenue generating subscribers is at 2.68 million.
  • The Telco added 15k postpaid subscribers in the quarter (added 18k revenue generating subs)
  • Postpaid ARPU dropped to RM100 (vs RM101 in 2Q16)
  • There are 1.5 million MaxisONE plan subscriptions with lower ARPU of RM129/month (vs RM143/month in 2Q16 & RM150 in 1Q16)

Mobile Internet

  • 72% of subscribers are mobile Internet users
  • 4G LTE users consumed an average 4.4GB a month
  • Postpaid users consumed an average 3.67GB a month
  • Prepaid users consumed an average 2.6GB a month
  • 81% of postpaid subscribers are smartphone users
  • 72% of prepaid subscribers are smartphone users
  • 4.2 million LTE devices in the network

Maxis Mobile Network

  • 4G LTE population coverage now at 88%, measured based on -110dBm quality criteria. Its 81% coverage if signal measured at -98dBm (vs 80% in 2Q16)
  • 96% 2G human population coverage, unchanged since last quarter
  • 94% 3G human population coverage, unchanged since last quarter
  • 93% of the mobile network have been modernised, unchanged since last quarter

Key Financial Highlights for Q3 2016, according to Maxis:

  • Service revenue grew 2.8% to RM2,113 million from Q2
  • EBITDA grew 13.2% to RM1,139 million from Q2
  • Clear leadership in 4G LTE network coverage
  • Declared third interim dividend of 5 sen net per share

Quarter-on-Quarter (QoQ) – Q3 2016 vs Q2 2016

  • Service revenue grew 2.8% to RM2,113 million driven by strong prepaid performance
  • Prepaid revenue grew 6.6% to RM1,022 million
  • Postpaid added 18k new customers, revenue stable with a slight decline at RM960 million against RM975 million
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 13.2% to RM1,139 million
  • Profit After Tax (PAT) up 22.1% to RM514 million

Year-on-Year (YoY) – Q3 2016 vs Q3 2015

  • Service revenue at RM2,113 million, 1.9% lower than Q3 2015
  • EBITDA improved 2.5% to RM1,139 million
  • PAT improved 0.8% to RM514 million
[PDF]– Maxis Media Statement to Bursa Malaysia

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy